Real estate prices continue to fall in Portugal – every month since December – reflecting the current political and economic crisis aggravated since the resignation of socialist Prime Minister José Socrates last week.

As a consequence of the economic downturn, the free-fall in property value is being amplified by higher unemployment and the political uncertainly for Portugal’s future .

Property prices fell in all regions of Portugal last year, with the exception of the island of Madeira, where average property prices increased by 1.2 per cent.